Are contributions of unused vacation pay to the Plan taxable?
A40: Participants in the Plan who also participate in the Vacation Pay Deferral Program may be eligible to contribute unused vacation pay to the Plan. The value of such contributions would be treated the same as other deferred compensation under the Plan and only be subject to federal and Hawaii income tax in the year the compensation is paid or otherwise made available to the participant or beneficiary.
Related Questions
- What is the benefit of a health care savings plan over rolling vacation pay into one of the optional retirement plans offered by the University?
- What happens to any unused contribution? Why can the participants get a refund of their unused contributions at the end of the Plan Year?
- Are contributions of unused vacation pay to the Plan taxable?
